The breaking of new shares reached a new high, and the phenomenon of investors abandoning their purchase after winning the lottery also gradually increased. Although according to the regulations of the Shanghai and Shenzhen Stock Exchange, investors have abandoned the purchase three times in 12 months, and will not be allowed to participate in the subscription of new shares / new bonds on the 180th, the number of successful shareholders who choose to abandon the purchase is still increasing.
In this regard, some securities companies have issued rigid regulations to customers that shares shall not be abandoned after winning the lottery. For example, Caitong Securities Co.Ltd(601108) sent a service message to customers that “payment for winning new shares is an obligation of shareholders” and “no abandonment of purchase” for a time, which was not only puzzled by customers, but also discussed a lot in the securities industry.
The reminder message mentioned, “if the investor has won the lottery for new shares and the account funds are sufficient, the securities company will freeze the funds in accordance with the national regulations and shall not abandon the purchase.”
The financial Associated Press reporter called Caitong Securities Co.Ltd(601108) customer service in this regard. The customer service staff said that the reminder message of the company was in accordance with the Q & A on the implementation rules for online and offline issuance of initial public offerings (revised in 2016) of Shanghai and Shenzhen Stock Exchange. The document clearly mentioned that “investors who have won the lot cannot give up subscribing for new shares according to their personal wishes” and other relevant contents. Asked about the specific source of this document, the person replied that the document is a window guidance document issued by the exchange to securities companies and has not been publicly posted on the Internet
according to this, the reporter interviewed relevant persons of the exchange and got the reply that the exchange has no such window guidance
At the same time, the customer service staff told reporters that the winning lot number will be published on the third day of subscription (T + 2 day). Caitong Securities Co.Ltd(601108) will freeze the customer’s funds ahead of the second day of subscription (T + 1 day, the date of issuing the subscription allotment number of new shares). If there are still funds (whether full or not) in the customer’s account by this time point, they will be frozen and can not apply for unfreezing.
The customer stressed that this practice is completely in accordance with the principle that “winning the lottery payment is the obligation of shareholders”.
Caitong Securities Co.Ltd(601108) is not an isolated practice, and some other securities companies also have such provisions. So, what are the specific rules of the relevant regulations on online innovation Caitong Securities Co.Ltd(601108) of the relevant practices, is it a reasonable provision or a overlord clause?
After winning the lottery, people in the business department are very frank about how to do it. There should be no spare money in the account.
is there any right to abandon the purchase after winning the lot
The dispute mainly comes from two parts: one is whether the successful payment of shareholders should be forced not to abandon the purchase; The second is whether the time point of capital freezing is t + 1 day is reasonable and whether it is a common action in the industry.
According to the statement of Caitong Securities Co.Ltd(601108) customer service personnel, the reporter found the Baidu Library Document of the detailed rules for the implementation of online and offline issuance of initial public offerings (revised in 2016) in Shanghai and Shenzhen on the Internet.
According to Article 9, the investors who have won the lot cannot give up the subscription of new shares according to their personal wishes, and must perform the settlement obligations according to the results of the lot. The settlement participant shall freeze or deduct the subscription funds of new shares in the investor’s capital account in time, and declare the abandonment of subscription data according to the freezing or deduction results.
The reporter consulted the website of Shenzhen Stock Exchange and did not find the above statement in the question and answer entitled “detailed rules for the implementation of online and offline issuance of initial new shares in Shenzhen stock market (revised in 2016)”. However, the document interprets matters related to the subscription and abandonment of new shares.
Shenzhen Stock Exchange mentioned that after winning the lottery, investors only need to ensure that their capital account has sufficient subscription funds on the day of T + 2, and the insufficient subscription funds are deemed to give up the subscription. The settlement participants will report to CSDCC Shenzhen Branch before 15:00 on T + 3. The number of abandoned subscriptions can not be an integral multiple of 500 shares, and the minimum unit is 1 share.
However, it is also reminded that if investors give up their subscription three times in a row within 12 months, they will be included in the list of restricted subscription. They shall not participate in the online subscription of new shares within 6 months (calculated according to 180 natural days, including the next day) from the day after the settlement participant last reported that they give up their subscription. If an investor has been suspended for 6 months due to insufficient payment of winning lots for 3 consecutive months, it will be automatically unlocked after 6 months, and the investor does not need to go to the account opening business department to perform relevant procedures.
Among them, the situation of abandoning subscription is counted separately in Shanghai and Shenzhen stock markets and judged by investors.
“Consecutive 12 months” means any consecutive 12 months, calculated on a rolling basis;
The number of times of abandonment of subscription shall be calculated according to the number of new shares actually abandoned by the investor;
Partial abandonment of winning shares by investors also belongs to the situation of “insufficient payment”, which shall be included in the statistics of the number of times of abandonment of subscription;
The situations of giving up subscription occurred in unqualified, dormant and cancelled securities accounts are also included in the statistics;
if the investor’s subscription of new shares is confirmed invalid due to insufficient funds of the settlement participants, it will not be included in the statistics of the number of times of abandonment of subscription
In other words, except for the case of “insufficient funds of settlement participants”, as long as the winning customer abandons the purchase when there is available funds on the book, they are included in the statistics of abandonment times.
In this regard, a person from the business department of securities companies directly told reporters, “just don’t leave money on the customer’s new account. Some securities companies don’t support the independent choice of not paying, so they can only transfer out the money by themselves.”
In addition, the interviewed securities companies also told reporters that their companies have no mandatory payment for the winning lot, which depends entirely on the wishes of customers, but they will also remind customers not to exceed the times of abandonment specified by the exchange, so as not to affect the subsequent operation.
t + 1 is it reasonable to freeze customer funds and not allow unfreezing
The more controversial point is whether Caitong Securities Co.Ltd(601108) is appropriate and reasonable to freeze customers’ funds on T + 1 and not allow unfreezing.
According to the stock winning process of a securities firm, on t day, that is, the day of new share issuance, investors participate in the purchase of new shares. They can apply for new shares as long as they submit entrustment from 9:00 a.m. to 3:00 p.m. on the working day of new share issuance;
The subscription allotment number of new shares will be announced on the second day of subscription (T + 1). Investors can inquire the allotment number of their subscription of new shares through telephone entrustment, business department counter inquiry, hall self-service entrustment, etc;
The winning lot number will be announced on the third day of subscription (T + 2). Investors can confirm whether they have won the lot by checking with the winning number.
The fourth day of subscription (T + 3) is the payment date, that is, the payment deadline for the subscription of new shares. If the investor wins the lot, he must ensure that there is sufficient subscription funds in the account on that day; Otherwise, the account shall be guaranteed to have full payment fund balance before 16:00 on the same day, the system will pay automatically, and the balance of new shares successfully paid will be displayed in the account at the end of the day.
In the aforementioned relevant documents issued by Shenzhen Stock Exchange, it is mentioned that the “end of T + 2 day” stipulated in the implementation rules refers to the time before 24 pm on T + 2 day, and there is no specific deadline for payment on T + 2 day. The settlement participant may agree with the investor on the specific deadline according to the actual situation, and ensure that it is no later than 24:00 p.m. on t+2.
Accordingly, the reporter consulted the business department of several securities companies. A person in charge of the business department of a medium-sized securities firm in South China told reporters that the practice of his company is that if the customer has the intention to abandon the purchase after winning the lot, the customer manager will inform him to transfer the funds in advance before t + 2, “otherwise it will be very troublesome to apply for unfreezing after freezing.” He also said that if the customer has no time to transfer out the funds before t + 3, the funds on the account can be used for reverse repurchase, “because the freeze only limits the transfer out.”
Other securities companies launched the “new share winning lot freezing” function on the app, so that investors who intend to abandon the purchase and freeze funds for other purposes can release the frozen funds on the winning lot payment date (T + 2).
Another business person from the head brokerage business department said that his company did not set the terms of default freezing, which can be transferred out on T + 3.
winning the lottery is like winning the knife, and the new shares broke to a new high during the year
” Caitong Securities Co.Ltd(601108) at this time, is it related to the large proportion of recently high priced new shares that have been repurchased by sending a notice message of ‘no repurchasing’?” Some people in the industry speculated.
On April 12, Jingwei Hengrun released the announcement of listing and issuance results. According to the statistics of online subscription of new shares, online investors abandoned 3260900 shares, with an amount of 395 million yuan, and the final online issuance was 9.6675 million shares. According to this calculation, the abandonment rate of individual investors is as high as 33.76%, that is, about 3.37 shares per 10 shares.
The announcement shows that the number of shares abandoned by online and offline investors is underwritten by the joint lead underwriter (Huaxing securities), and the number of underwritten shares accounts for 10.87% of the total scale of this issuance. The announcement shows that Jingwei Hengrun’s issue price is 121 yuan / share.
Not only the proportion of abandonment is as high as 10%, but the abandonment amount of RMB 395 million also ranks among the top three at present. At present, the highest abandonment amount is RMB 756 million of China Mobile, followed by RMB 653 million of Postal Savings Bank Of China Co.Ltd(601658) .
The large-scale abandonment of purchase has something to do with the record high proportion of new share issuance. “Winning the lottery is like winning the knife” and “losing money by luck”. The new shares that have been broken repeatedly make investors cry out that they can’t afford to be hurt.
As of April 14, 97 new shares have been issued this year, including 25 new shares broken on the first day of listing, with the proportion of broken individual shares reaching 25.8%.
As of April 14, among the top 10 stocks with a decline in new shares issued on the first day of listing this year, three were listed in January this year and four were listed in March this year, while the three new shares listed in April, vijiechuangxin-u and Puyuan jingdian-u, ranked first and second on the first day of issuance this year with a decline of 36.04% and 34.66% respectively.
According to statistics, the number of broken stocks since listing has reached 55, accounting for 56.7%. Among them, Aojie technology-u, which was listed on January 14, has an issue price of 164.54 yuan. As of the closing on April 14, the decline has reached 60.4% and the closing price is 65.15 yuan; Maiwei bio-u, which was listed and issued on January 18, was priced at 34.80 yuan. As of the closing on April 14, it fell by 48.85% and closed at 17.8 yuan. In addition, new shares in the year with a decline of more than 40% since listing include Yahong pharmaceutical-u, Shouyao holding-u, silinger and Weike technology.
